Platinum Victory and Jakel's JV granted the first social loan financing in Southeast Asia

PETALING JAYA (May 5): Platinum Victory’s Jayyid Land Sdn Bhd, a joint venture (JV) with Jakel Group, is the first developer in Southeast Asia to be granted the Social Loan Principles (SLP)-based financing by HSBC.

The deal, totalling RM136 million, will finance the Phase 1 of the J. Satine development in Setapak, Kuala Lumpur, which comprises 2,068 units of affordable residential apartments under the Residensi Wilayah Keluarga Malaysia programme.

Granted under HSBC Amanah Malaysia Bhd, the financing seeks to support socio-economic activities targeted to mitigate social issues and housing affordability especially in city centres.

The SLP is administered by the International Capital Markets Association and is aligned with the Social Bond Principles, one of the main internationally-recognised voluntary issuance guidelines promoting transparency, disclosure and reporting in the social bond market.

“This financing complements the government’s aim to build more affordable housing and promotes homeownership for all Malaysians. As an international bank with strong credentials in sustainability, HSBC understood our direction to increase our focus on environmental, social and governance (ESG) and was able to collaborate and structure this SLP-based financing for us,” said Platinum Victory Group managing director and Jayyid Land executive director Tan Sri Datuk Seri Gan Yu Chai in a media statement on Apr 25.

"This is a remarkable milestone for Malaysia’s property sector that will create a positive impact for the community," he added.  

“HSBC’s first social loan in Malaysia – and the first for the country’s real estate sector – not only supports Jayyid Land as they embed ESG into their operations but also helps deliver economic opportunities and social benefits to the local community," said HSBC South and Southeast Asia head of commercial banking Amanda Murphy.

This is also in line with the 12th Malaysia Plan to offer another 500,000 units of quality and affordable homes for Malaysians by 2025.

"In Malaysia, we have earmarked RM1 billion towards green and sustainable financing to enable businesses to embark on their sustainability journeys and switch to more sustainable ways of doing business," added Murphy. 

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